The breakdown through support from the final day of 2009 proved to be a quick bout of profit taking before year end as the SPY gapped higher and continued to climb on Monday. The quickness of the move back up through 112 had to take a lot of bears off guard and that helped add to the intensity of the rally. We will now view 113 as the first level of important support as that was the level of the prior highs, below that the 5DMA should find buyers and then the 112 level. There is an intraday low from 9/18/08 at 113.80 (see inset) which may be an short term level where sellers show up and above that ithe next level of focus would be approximately 116.
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